77TH CONG., 2D SESS.-CH. 226 -AP'l. 8 , 1942 203 "The foregoing allowance for loss shall apply only to casks Limitations. or packages of a capacity of forty or more wine-gallons, and the allowance for loss on casks or packages of less capacity than forty gallons shall not exceed one-half the amount allowed on said forty-gallon casks or packages; but no allowance shall be made on casks or packages of less capacity than twenty gallons. The proof of such distilled spirits shall not in any case be computed at the time of withdrawal at less than 100 per centum. (b) Loss. -The Commissioner of Internal Revenue may, under Abatement of tax. regulations to be prescribed by him and approved by the Secretary of the Treasury, abate any internal-revenue taxes accruing on dis- tilled spirits if he shall find that- "(1) The distilled spirits were not stolen or intentionally tills S w hi eonds- destroyed but were lost, otherwise than by leakage or evapora- tion, while on the premises of a registered distillery, during or after production and prior to deposit in an internal revenue bonded warehouse. "(2) The distilled spirits were not stolen or intentionally While be ig tra n - destroyed but were lost, otherwise than by leakage or evaporation, while being transferred between buildings constituting the same internal revenue bonded warehouse or while being transferred by a common carrier from the premises of a registered distillery to an internal revenue bonded warehouse off such registered distillery premises, or while being transferred by a common carrier between internal revenue bonded warehouses. "(3) The distilled spirits were not stolen or intentionally hoie bonde war destroyed but were lost, otherwise than by leakage or evaporation, while the same remained in an internal revenue bonded ware- house and such loss is not allowable under subsection (a) hereof. "(4) The distilled spirits were withdrawn for use in the forti- for frtfniti fication of sweet wines and were not stolen or intentionally sweet wines. destroyed but were lost, otherwise than by leakage or evaporation, prior to such use while being transferred to, 'or while stored in, the fortifying room on the bonded winery premises. "(5) The distilled spirits were lost by theft from the premises Losses by theft. of a registered distillery, or while being transferred between buildings, constituting the same internal revenue bonded ware- house, or while being transferred by common carrier to an internal revenue bonded warehouse off such registered distillery premises, or while being transferred by a common carrier between internal revenue bonded warehouses, and that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the distiller, owner, consignor, consignee, bailee, or carrier, or the employees of any of them. "(6) The distilled spirits were lost by theft from an internal revenue bonded warehouse, and that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the distiller, owner, or warehouseman, or the employees of any of them. "(7) The distilled spirits were withdrawn for use in the forti- fication of sweet wines and were lost by theft prior to such use while being transferred to, or while stored in, the fortifying room on the bonded winery premises, and that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the distiller, owner. consignor, consignee, bailee, or carrier, or the employees of any of them. "(8) The distilled spirits were unfit for use for beverage pur- Ditilled spirits un- poses and were voluntarily destroyed by the distiller, the ware- oe. e ge- houseman, or the proprietor of the bonded winery premises, 56 STAT.]
�
